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Market Growth Potential & Analysis
11/13/2012 at 6:57 AM ET
Which method should I use for analysing a growth potential of an existing product in the market. I need to do an analysis of a product growth potential ready to be launched in the market. So we only got a brief info for competitors' products and their prices.
I thought I cannot use the GE Matrix or BCG method as I cannot guess the profitability of the competition products. Do you know any other way to do this analysis?
11/13/2012 at 9:08 AM
What's the question you need to answer? How will you use the result of your analysis?
11/13/2012 at 9:23 AM
First if your competitors are public companies you can easily know their profitability. But that isn't going to tell you about the growth of the market.
Is your product a B2B or B2C?
I often do analysis like this -- there is no easy method. The research takes me days, wriiting the report after that takes little time.
Identify the niches and hit the web. Look for unbiased studies on the growth of the markets. Their competitors will be there. The competitor websites often talk about growth of the market, their growth. They're bragging and they want to establish themselves as a expert. I used a variation of a business plan template I originally got from Business Plan Pro that I've modified over the years.
Then do a SWOT analysis. You will find the area your firm should be in will bubble to the surface. You will see the voids in the markets, the opportuntiies.
Sell Well and Prosper tm
11/13/2012 at 10:03 AM
Thank you for your answer. This is a B2B product. Some of the competitors are public but they offer different types of products for different sectors also. In their annual report, it is difficult to guess the profitability for the concerning range.
In GE matrix, they also use several dimensions for market attractiveness such as profit margin, market rate of growth, environmental impact etc, how should I define these dimensions for competitors?
11/13/2012 at 10:17 AM
It is difficult but not impossible. In an annual report you'll see where they expect growth and profitability in the verbage, not necessarily the numbers.
For example, YUM reports their increased profitability is due to the Dorito shell products. They are not going to hand you those numbers. It would be too dangerous to their profitability in the wrong hands. And you as a competitor are just the hands they don't want it in.
In reading about their business you will see that they are ramping up in x industry. That is a clue, they won't be investing in something they don't expect return. From there research that industry for trends and expected growth potential.
11/13/2012 at 12:06 PM
I have a question for you: why do you need to know the insider info. on your competitors?
You can do a lot from just where you are right now. More importantly, it won't be wasted money because the things you learn are concrete and you can apply them directly.
Sure, you need to know something about your competition - you do not need to know the times they stop for coffee each morning, nor when they are intending taking their holidays.
One of the oldest tricks to find out what your competition really is like is to buy one of their products. Just doing that will give you insights you cannot gain from any speculative analysis no matter how good it is. If you want breakthroughs, this is the one to follow.
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